the woodlands q3 2016 office snapshot
TRANSCRIPT
Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
GalvestonBay
225Bellaire
The Woodlands
Humble
Pasadena
IAH
EFD
HOU
Cypress
Tomball
KatyBrookshire
LakeHouston
La Porte146
League City
Kingwood
Atascocita
Spring
Pearland
35
35
Richmond
WallerHockley
2421488
1488
Conroe
Magnolia
WillisLake
Conroe
Crosby
CBD
Ship Channel
Clear Lake
Baytown
Mont Belvieu
Dayton
149
149
Cleveland105
105
105
321
330
Alvin
Hitchcock
TexasCity
Sugar Land
The Woodlands office market not isolated from Houston’s current market conditions
Research Snapshot
THE WOODLANDS | OFFICEQ3 2016
Statistical Summary
1488
2920249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’s Mill Rd.
Spring Stuebner
Gosling Rd.Kuykendahl
To Houston CBD
WOODLANDS SUBMARKET MAP
VACANCYRENTAL
RATE
Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q3-2016 Q2-2016 Q3-2016 Q2-2016 AVG ($/SF)
The Woodlands
A 39 10,926,590 1,319,578 12.1% 75,480 0.7% 1,395,058 12.8% 11.5% 36,452 10,798 $37.05B 70 4,399,318 431,420 9.8% 69,346 1.6% 500,766 11.4% 11.1% -14,328 -29,786 $24.45C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 8.2% 0 0 $19.80Total 113 15,634,069 1,776,117 11.4% 144,826 0.9% 1,920,943 12.3% 11.3% 22,124 -18,988 $32.57
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)NET ABSORPTION
(SF)
The Woodlands’ office market continues to feel the effects of Houston’s office market woes. The Woodlands is not isolated from Houston’s current market conditions, but does fare better than most of Houston’s other office submarkets. The Woodlands’ Q3 2016 office market vacancy rate increased 100 basis points over the quarter, but even with this increase its vacancy rate is still lower than that of the other major Houston office submarkets.
Leasing activity increased 30.4% over the quarter and 46.3% over the year. Webber, LLC signed a lease in 1725 Hughes Landing for 46,600 SF. The company will be moving in April 2017 from its current location at 9303 New Trails Dr where it occupies nearly 25,000 square feet.
Lisa Bridges Director of Market Research | Houston
HOUSTONTHE WOODLANDS
2 The Woodlands Research Snapshot | Q3 2016 | Office | Colliers International2
The average quoted rental rates are a mix of direct and sublet rates and are based on a blend of gross and NNN. The graphs below are only intended to show rental rate trends. Actual gross rates are higher than the average rate shown in the graph.
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$28.00
Class B Rental Rate and Vacancy Percentage The Woodlands, TX Class B Rents Class B Vacancy
*Vacancy percentage includes direct and sublease space.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease SpaceQ3 2016
Class A: 277,680 SF or 2.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$33.00
$35.00
$37.00
$39.00
Class A Rental Rate and Vacancy Percentage The Woodlands, TX
Class A Rents Class A Vacancy
*Vacancy percentage includes direct and sublease space.
3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>
FOR MORE INFORMATIONLisa BridgesDirector of Market Research | Houston+1 713 830 [email protected]
3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>
3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
Colliers International | The Woodlands1790 Hughes Landing Blvd., Suite 250The Woodlands, TX 77380+1 713 830 4011colliers.com/thewoodlands
Absorption and New SupplyWoodlands Class A Office
Woodlands Class B Office
-200,0000
200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
Net Absorption New Supply